Young Homeowner Question-ADVICE NEEDED
Hello all,
I would like some advice. I am 24 years old. A few years ago I purchased a duplex as primary residence. The interest-rate I got is 2.625%. The Principle, interest, taxes and insurance is 2,000$ per month. I lease the other unit for 1,650$ per month and assume I can get the same for the unit I live in at the time of relocating This is a fixed rate and since I have lived here two out of the last five years. By selling, I would avoid paying capital gains. I’m going to be moving out of state within the next nine months. Taking into consideration agent fees and closing costs. I would bet roughly 200k from selling. Considering my age, I could use parts of this money for my relocating. (Down payment towards a new place). Being a landlord is stressful for me, so I would most likely resort to using a property management company. Between their cut, maintenance, property issues such as roof replacement etc. I am left with the question. Keep it because it’s a good rate, good investment as it would be paid off by retirement age, the opportunity to move back here at some point and have a place secured. Or sell and have the excess funds , not worry about maintenance and landlording. Any advice and insight would be certainly appreciated. My other concern is if our market sees a correction that 200k i would net now, could dwindle down if I’m left in a position of having to sell.
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#3 Classifieds Contributor
- Real Estate Agent
- Metro Detroit
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#3 Classifieds Contributor
- Real Estate Agent
- Metro Detroit
Why did you buy a duplex to begin with?
How committed are you to real estate investing?
Even if you hire a PMC, a rental is not a passive investment. You'll always need 2-4 hours/month commitment to review what's happening and respond to your PMC.
I you need funds to buy where you move, you should line up a HELOC before you move. You can tap those funds for a down payment.
- Michael Smythe
